Interesting tidbit of news today from the very small world of 406 MHz distress beacons:
Digital Angel Corporation Acquires Assets of McMurdo Marine Electronics Business
McMurdo Acquisition Solidifies Digital Angel’s Position as Leading Global Provider of Emergency Locator Beacons
SOUTH ST. PAUL, Minn.–(BUSINESS WIRE)–Digital Angel Corporation (Amex: DOC) announced today that Signature Industries, its London-based subsidiary, has entered into an agreement to acquire certain assets and customer contracts of McMurdo Ltd., the U.K.’s premier manufacturer of emergency location beacons, from Chemring Group PLC. Digital Angel, a global leader in the development and deployment of sophisticated RFID and GPS technology, will purchase McMurdo for approximately $6.2 million (USD), with additional deferred payments ranging from $0 – $3 million (USD), dependent upon performance of the business following the sale.
“With a worldwide distribution network of approximately 60 outlets, McMurdo offers a vibrant and diverse customer base,” said Kevin McGrath, CEO of Digital Angel. “This acquisition will more than double the revenue base of our survival radio business and significantly broadens our product offerings in both the maritime and military sectors. We’re confident this acquisition will prove to be one of Digital Angel’s most important and strategic moves.”
Both Digital Angel and McMurdo have a long history of supplying critical safety and location products. Through the SARBE division of Signature Industries, Digital Angel is a global leader in providing the military sector with survival radio technology, while McMurdo holds a definitive edge in the maritime industry. Together these companies will become the premier manufacturer of Personal/Emergency Locator Beacons and enjoy a considerable technological advantage over their competitors.
For nearly seven decades, McMurdo has distinguished itself as a leader in the development and manufacturing of safety equipment technology. Its products, including the original EPIRB (Emergency Position Indicating Radio Beacon) and the first GMDSS (Global Maritime Distress and Safety System) approved Search And Rescue Transponder, have become standard, lifesaving, equipment on many recreational, commercial and military marine vehicles. In 2000, McMurdo demonstrated the versatility of its technology successfully launching its first PLB (Personal Locator Beacon) for use on land, sea or air. The company continues to lead the way in the functionality and accuracy of emergency location beacons.
Emergency Locator Beacons represent a core competency and key growth market for Digital Angel and its subsidiary Signature Industries. Impending changes to the COSPAS-SARSAT satellite monitoring system mean much of the equipment currently in service will require replacement by February 2009. McMurdo and SARBE, with its improved range of radios such as the SARBE G2R and the SARBE 6-406, are uniquely positioned to exploit these opportunities in their respective markets.
The SARBE Division of Signature Industries manufactures a complete line of military search and rescue beacons and has worked closely with the Royal Marine Air Force for more than 30 years and the UK Ministry of Defense for more than 50 years. The acquisition of McMurdo’s technology and its manufacturing infrastructure should significantly strengthen Digital Angel’s position in the Locator Beacon Industry.
About Digital Angel Corporation
Digital Angel Corporation develops and deploys sensor and communications technologies that enable rapid and accurate identification, location tracking, and condition monitoring of high-value assets. Applications for the Company’s products include identification and monitoring of humans, pets, fish, poultry and livestock through its patented implantable microchips; location tracking and message monitoring of vehicles and aircraft in remote locations through systems that integrate GPS and geosynchronous satellite communications; and monitoring of asset conditions such as temperature and movement, through advanced miniature sensors.
Digital Angel Corporation is majority-owned by Applied Digital Inc. (Nasdaq:ADSX). For more information about Digital Angel, please visit www.DigitalAngelCorp.com.